Training: Types of training undertaken by businesses

The idea

Businesses use different training types to build employee capability. Induction training introduces new starters to policies, safety and culture, reducing early errors. On-the-job training happens while working, often through demonstration, coaching or mentoring; it is cost-effective and job-specific but can pass on poor habits and lacks structured theory. Off-the-job training occurs away from the workstation, for example day release, short courses or online modules; it offers expert input and broader skills but raises costs and causes absence. Internal training is delivered by the business's own staff, while external training uses outside providers. Formal training follows a planned programme; informal training is unstructured learning from experience. The choice depends on cost, time, required skills and business needs.

What earns the marks

• Induction training: initial training for new employees covering company policies, health and safety, role expectations and workplace culture.
• On-the-job training: learning at the workplace while performing tasks, often via demonstration, coaching, mentoring or job rotation; practical and job-specific.
• Off-the-job training: learning away from the normal workstation, such as day release, short courses, online modules or external workshops; provides expert knowledge and broader skills.
• Internal training: delivered by the business's own experienced staff or managers; can be tailored and lower cost but may lack fresh external expertise.
• External training: provided by outside specialists or agencies; brings current expertise and qualifications but usually costs more and may be less tailored.
• Formal training: structured, planned programmes with defined objectives and assessment; informal training: unstructured learning through experience, observation or peer support.
• Choice of training type depends on factors such as cost, time available, required skills, employee needs and business objectives.

Common mistakes and how to put them right

• Confusing induction training with on-the-job training.

  Put it right: Induction is initial orientation for new starters; on-the-job training develops task skills while working.

• Assuming off-the-job training is always better because it is external.

  Put it right: Off-the-job training can be broader but costs more and removes staff from work; on-the-job can be more cost-effective and job-specific.

• Treating internal and external training as identical to on-the-job and off-the-job.

  Put it right: Internal/external describes who delivers the training; on-the-job/off-the-job describes where it takes place.

• Describing informal training as always inferior.

  Put it right: Informal training can build practical skills and confidence quickly, though it may lack consistency and formal recognition.

Exam tips

• Define each training type clearly and link it to a business context, such as a restaurant using on-the-job coaching for waiting staff.
• Use comparative language: for example, 'off-the-job training provides expert input but increases costs and staff absence'.
• When asked to explain, give a cause-and-effect chain: training type → employee learning → business outcome.
• Avoid listing types without explanation; each point should show understanding of how the training is delivered and its effect.